This week’s LATAM crypto news includes key developments: El Salvador continues to aggressively accumulate Bitcoin, pushing national reserves above 7,400 BTC despite market volatility, while Argentina’s LIBRA investigation reaches a critical point, with the release of the congressional report coinciding with rapid multi-million-dollar wallet transfers.
São Paulo remains the largest cryptocurrency hub in Brazil, accounting for 31.3% of the country’s rich and diverse investor base.
These stories demonstrate the changing landscape of bitcoin acceptance, legislation, and market activity in Latin America.
El Salvador’s Bitcoin accumulation strategy under scrutiny
The Salvadoran government has received renewed worldwide attention after purchasing 1,089 BTC after a dramatic market collapse on Wednesday, in which Bitcoin briefly dipped below $90,000.
This acquisition increases the country’s overall holdings to over 7,474 BTC, reinforcing its accumulation strategy despite market volatility and a nearly 27% decline from Bitcoin’s all-time high.
Officials stressed that the acquisition, which was made in three big transactions totalling more than $100 million, demonstrates sustained trust in Bitcoin as a long-term strategic asset.
The action came amid increased uncertainty and macroeconomic pressure, sparking debate about its economic implications.
Despite the fact that Bitcoin is no longer legal tender in the country as a result of IMF accords, the administration continues to accumulate the asset, touting it as a cornerstone of its financial strategy.
While some analysts see the endurance of these purchases as evidence of institutional conviction, others believe that the market’s fragility raises concerns about long-term risk and sustainability.
Argentina’s LIBRA crypto investigation reaches critical stage
The Argentine Congress’s LIBRA Investigative Commission issued its long-awaited final report, coinciding with the unexpected transfer of millions of dollars from inactive wallets associated with the case.
The report, which was created after months of testimony, technical research, and judicial cooperation, seeks to analyse political accountability, judicial oversight, and fund management in one of Argentina’s most contentious cryptocurrency investigations.
Commission President Maxi Ferraro stated that the report investigates any indirect payments to public officials and assesses acts or omissions that may have enabled or failed to prevent the developments in the LIBRA affair.
Meanwhile, on-chain experts discovered considerable wallet activity, with previously inactive wallets transferring more than $58 million in USDC to SOL, a currency that cannot be frozen, raising concerns about timing and intent.
United States officials momentarily froze and then released the money, while Argentine prosecutors continue to seek freeze orders.
The report’s release represents a watershed moment for judicial oversight, political accountability, and intensified scrutiny of LIBRA-linked wallets, as analysts warn that these recent transactions could be the last visible evidence of significant cash.
São Paulo leads Brazil’s crypto market, says poll
According to a 2025 Altside survey, São Paulo now accounts for 31.3% of all cryptocurrency investors in Brazil, exceeding the combined proportion of the North and Northeast regions (16.3%).
According to the report, Brazilian crypto investors are becoming more mature and rich, with an average wealth of BRL 521,900, more than three times that of traditional investors, and more than a quarter owning assets worth more than BRL 1 million.
This generational shift indicates that cryptocurrencies are no longer simply for enthusiasts but are being used in asset management and diversification plans.
The report also reveals evolving investor behaviour: an average of six cryptoassets per portfolio, 54.2% in self-custody, and a virtually even distribution of risk profiles.
Bitcoin, Ethereum, Solana, Tether/USDT, and XRP are popular assets, with 19% staking and 17.5% investing in yield-generating stablecoins, indicating an increasing sophistication.
These trends reflect worldwide developments, such as Bitcoin ETFs and institutional engagement from corporations such as BlackRock and Fidelity, which coincide with new BTC highs in 2025.
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